Toronto Bayview at the Village | 37.5m | 10s | Canderel | Graziani + Corazza

We have been informed that the project is now moving to 2023 and asking for signatures as the agreement is amended. They have also mentioned that still the project is not approved by the city, which is troubling as it can further delay the project. No details have been provided about changes made to the original plan to now such as from 8 to 11 floors. In all likelihood this project if it ever starts will only get completed by 2025. Is it worth waiting or cut your losses and move on to a more reputed builder such as Tridel who have a brand recognition. This is a good learning experience to all.
 
It sounds more like an attempt to get as many units as possible back and re-sale them to current prices. The first time they offer this was when they changed the date to 2022, on that moment there were no offerings to pay interest (not builder's fault as per contract). Now they are doing it again because the contract forces them to officially assume the building process by x date (builders fault) and they are not going to get there because of their plan changes. They cant reach 2025 because by contract they are force to completion by Nov 2023, after that, again, is builders fault. It will be a matter if you are doing this as an investment or you need a home. Investment you can cut them off and move to the next one, or see if they complete it. People looking and needing a home will definitely cut them loose.
 
icek said:
It sounds more like an attempt to get as many units as possible back and re-sale them to current prices. The first time they offer this was when they changed the date to 2022, on that moment there were no offerings to pay interest (not builder's fault as per contract). Now they are doing it again because the contract forces them to officially assume the building process by x date (builders fault) and they are not going to get there because of their plan changes. They cant reach 2025 because by contract they are force to completion by Nov 2023, after that, again, is builders fault. It will be a matter if you are doing this as an investment or you need a home. Investment you can cut them off and move to the next one, or see if they complete it. People looking and needing a home will definitely cut them loose.
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Thanks for your insights in explaining this....Just to clarify, the absolute termination date is Nov 2023. Failing to meet this date as per the contract (Sec 7), the purchaser is entitled for a compensation of $7500, which is similar to a compensation of 8% currently offered by the builder. Question? Can the builder still delay the project beyond 2023? Based on the current building plan of 11 floors the city still has not approved the building and therefore getting it approved in the next 12 months plus getting it completed in 2 yrs is questinalabe. Therefore trying to make a call on staying put or moving on?
 
Globe and Mail article:

Toronto condo company asks for customer co-operation as project teeters on the edge

Some excerpts:

In recent weeks, investors holding presale purchase agreements for apartments or townhouses in the Six25BV building at 625 Sheppard Ave. began getting letters advising them that the closing date was going to be pushed further back – to 2023 – due to delays in planning and zoning approvals that have left the developer unable to secure construction financing.

The letters from Haven Developments, a Toronto firm with a short track record but multiple current projects, also contained an urgent warning and appeal.
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An addendum attached to the deals Haven has with presale buyers allows it to cancel the contracts by July 10 if it has failed to meet certain financing thresholds. The company believes it can still deliver the units, but needs more time to finish the planning process and is asking its customers to agree to amend those contracts and push the early termination conditions deadline to Nov. 14. “Essentially, we are seeking your support to allow us more time to find a resolution, therefore avoiding the cancellation of all agreements of purchase and sale,” Mr. Teperman’s letter states.
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Six25BV was initially marketed to buyers in March, 2016, and units sold for about $615 a square foot, according to data from Urbanation Inc. By contrast, projects in the GTA that have begun presales in the past six months are typically selling for more than $1,000 a square foot.

Mr. Abate’s project has added close to 50 unsold units thanks to planning approvals and adjacent land purchases, so what started as a 140-unit project with about 100 preconstruction purchase agreements could end up being a 180-210 unit building.

Mr. Abate said he needs every buyer to agree to extend, or leave now, in order for the project to move ahead. To sweeten the option of mutual release, Haven offered to return the deposits with an 8-per-cent return.
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The official line is they are asking for an extension. The unofficial story when you call the builder....take your cash + 8% interest and release us from the project. Building cost has gone up and therefore we cannot sell the units at the same price and make money. Also they went on to say that with the original floor plan of 8 floor this project was not profitable from day-1 . Only with 11 floors they can make money. If everyone signs this project they will be cancel and no pay 8%. For all the buyers the million dollar question? Do i take my deposit + 8% and run now or do i stay and trust Heaven developments?
 
Let's all take some time to shed a few tears for these "poor" developers. The Chickens are coming home to roost on these scam artists and they are trying save their own skin by saddling their patient investors with their loses. Meanwhile, they steamroll ahead on other projects, leaving misery in their path…
 
Project was cancelled today....

We are the solicitors for 625 Sheppard Bayview Village GP Inc. (the “Vendor”) with regard to the SIX25BV proposed condominium project.
As you are aware, the Tarion Statement of Critical Dates attached to and forming part of your purchase agreement included certain early termination conditions, being (i) the Vendor entering into binding agreements of purchase and sale for the sale of at least 130 dwelling units within the Condominium; and (ii) the Vendor receiving confirmation that financing for the project (including the construction thereof) on terms satisfactory to it in its sole and absolute discretion has been arranged and is available. The date on which the aforementioned conditions are to be satisfied is July 10, 2019.
In the Vendor’s letter dated June 17, 2019, the Vendor requested that all purchasers sign an amendment to extend the early termination conditions, with a view to being able to continue the project. Unfortunately, the Vendor has received very few responses.
Accordingly, this letter shall serve as notice that the aforementioned conditions have not been satisfied and will not be waived by the Vendor. As such, in accordance with the terms of the Tarion Addendum, the purchase agreement is hereby terminated and of no further force and effect.
Please note that before your deposit can be returned to you, the Vendor must receive approval from its deposit bondholder. Following receipt of the aforementioned approval, we will process the refund and notify you that you may pick up your cheque from our Toronto office, located at 40 King Street West, Suite 5800. Please note that cheques will not be mailed or delivered to you.
 
Hopefully they lost some money on the process, including real estate agent commissions, taxes, lawyers fees etc. Im certain they will come back to attempt to build on the same place, different design and name. The local government needs to make sure they suffer a bit cause of their games. It is our duty to dirty them up a bit so they do not get away that easily.
 
Heaven Development should not be allowed to build a 11 or 10 story building in this lot. We as buyers who lost should continue to lobby OMB in opposing this deal as long as we can. Their Jan 23, 2019 application was rejected due density issues. 1- Town houses in the back of the condo was too tall. 2- Number units exceed the building size. example- 10 floors vs neighbourhood is 6 & 8 floors. 3- Number of car park spots required is 190 but they only have 130.

Let's continue to lobby the city and OMB in not allowing Heaven developments in building anything on this site for the next decade. Customers are already have second thoughts who bought into their Clarkson GO project. A basement unit of 500SF @ $500k?
 
So wondering they returned the deposit what can we buy now in the market ? So disappointing for this development.
 
Nothing, location and price is hard to get anything affordable. 3 years wasted. Time to warn everyone about the company on any of their projects.
 
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